Cotton On MCX Settled Down

Cotton on MCX settled down -0.82% at 15710 due to weak export demand from China, the world's top cotton consumer. Though, some losses were capped on account of decline in cotton arrivals by 11% in 2015-16 from major producing belts due to pest attack and the first back-to-back drought in nearly three decades curtailed per-hectare yields.

The Cotton Association of India (CAI) has estimated a production of 345 lakh bales (of 170 kg each) of the fibre in the 2015/16 season that started on October 1, down by 37.75 lakh bales from an earlier estimate. CAI said that during the October to February period, spot markets across the country registered an arrival of 245 lakh bales – down 11.3 per cent compared to the same period a year ago, indicating a lower crop.